Archive · 2 Jun 2025
Maruti Suzuki Chairman: Car Affordability Concerns in India
Imagine most families in India can't buy a car.
The head of Maruti Suzuki says that's because cars have gotten too expensive, and a lot of people don't earn enough money.
The company's making less money lately.
Car sales in India are expected to barely grow in the next year.
However, Maruti Suzuki is selling more cars to other countries, which is a good thing for the company.
Maruti Suzuki's chairman stated that 88% of Indian households cannot afford a car.
Weakness in domestic car demand has been ongoing for several years.
Rising costs have significantly impacted the entry-level car market.
Domestic car sales growth for 2025-2026 is projected to be only 1-2%.
Maruti Suzuki sees exports as a "silver lining," with anticipated growth of around 20%.
- Who
- Maruti Suzuki Chairman RC Bhargava.
- What
- Discussion of challenges in the domestic car market due to affordability issues and weak demand.
- When
- Recent fiscal year 2025 and the upcoming 2025-2026.
- Where
- India.
- Why
- Driven by rising car prices, limited purchasing power, and declining demand.
- Indian Households Unable to Afford Car
- 88%
- Households with Income Under ₹5 Lakhs Annually
- 200 million
- Projected Car Sales Growth (2025-2026)
- 1-2%
- Maruti Suzuki Q4 EBITDA Decline
- 9%
- Maruti Suzuki Net Profit Decrease
- 4.3%
- Export Growth (Last Year)
- 17%
- Anticipated Export Growth
- 20%